Microsoft’s Redmond Campus Gets $169+ MM In Upgrades Over Last Year

Over the past year, Microsoft’s plans for the Redmond campus overhaul, expected to break ground this fall, have been widely reported and discussed. Meanwhile, permits valuing more than $169 million have already been issued for renovations to Redmond-based offices near the main expansion site. Using our National Building Permit Database, BuildZoom explored Microsoft’s most significant renovations from the past year.

Background
According to a November 2017 report from Fortune, Microsoft confirmed plans for a major Redmond, Washington campus overhaul that will add capacity for an additional 8,000 employees. Of the existing 125 campus buildings, 12 will be demolished and 18 added, for a completed total of 131 buildings in Redmond. Additionally, developers will make improvements to transportation infrastructure, public spaces, sports fields, and green spaces valued at $150 million. In total, the project is expected to take five to seven years and will include a total of 6.7 million square feet of renovated space. As reported by GeekWire in June, Microsoft also spent $250 million to acquire a neighboring office complex, representing the “missing piece of the puzzle” of their planned Redmond expansion.

During the past year, in which most development news has been focused on plans for the campus expansion, Microsoft has simultaneously been working on making significant changes to their existing facilities. Since September 2017, the city of Redmond has issued more than $169 million in construction permits for updates to existing buildings.

Top Ten Most Expensive Building Renovations
Of the $169 million permitted in the past year, $158.9 million was spent on the ten most expensive building renovations, as calculated by the cumulative valuations on construction permits in the past year. All of the top ten renovations are for existing office buildings, and the permit descriptions suggest that they will continue to be used as office space. As shown below, Building 40 topped the list with 30 permits issued, valued at a total of $45.2 million, including a $30 million permit for the interior construction of a new 200,000 square feet office space.

Top Ten Most Expensive Permits
The ten most expensive permits were filed for changes to five facilities, including office buildings 40, 113, 115, 122, and 3. These ten permits alone were valued at $137.6 million. Additionally, the project permits were all issued pre-June 2018, and are thus likely independent of the planned campus overhaul, which is expected to commence this fall.

Looking Forward
As Microsoft prepares to break ground on their multi-billion dollar redevelopment of their original Redmond HQ, it’s important to note that the cluster of buildings at the heart of the campus isn’t the only area that’s being renovated. The roughly $170 million in upgrades to existing buildings in the last year alone suggest that Microsoft is aiming for a broader modernization of all facilities in the Redmond area. And unlike Amazon’s plan to find a completely new city for their second headquarter, Microsoft’s massive investment in Redmond firmly establishes their intentions to continue to grow in their home city.

Methodology:
Total construction costs and permit counts were calculated by analyzing permits with ‘Microsoft’ in the description, and summarized by project address and building number.

Notes:

Permit values may be estimates or rounded and may not accurately reflect true construction costs.

Permits do not reflect all of a project’s costs and are meant to supplement our understanding of the project as a whole.

Aggregate sums are minimum estimates and may not include permits for demolition work, temporary structures, FF&E, engineering, or other public infrastructure improvements.

The data may not be exhaustive and is based on what has been made available by the City of Redmond, Washington.

Full permit descriptions, as shared above, were truncated to highlight interesting features.

Kelsey Graeber
Having grown up in Los Angeles and studied in New York, Kelsey is fascinated by how the built environment shapes our understanding of people, culture, and well-being. Her work is at the intersection of design, research, and marketing. She enjoys traveling, reading, and eating food that requires chopsticks.